In the United States will increase the interest rates. And in Europe interest rates will stay anyway, even 2019 is very low. “If this is not true, then conservative dividend Champions have catch-up potential now,” says Max Schott, the owner managed Stuttgart-based asset Manager, Sand & gravel. Schott supports its point of view on a comparison between the five-year bond of BASF and the dividend yield of BASF shares:
Hanno Mußler
editor in the economy.
F. A. Z.
A BASF-bond in the Euro throws off only a return of 0.6 per cent, if purchased today and held to maturity in January 2024. The BASF share has, however, at the present rate, and in the spring of 2019 unchanged dividend payment is a return of more than 5 percent.
But at the same time, Schott warns, to look only at the dividend yield. Finally, even well-established companies can make dividend payments fail, if the business deteriorate, prospects and profits are falling. And the dividend yield can also look so high because the stock price fell sharply. For many automobile manufacturers such as Daimler and BMW, but also automotive suppliers such as Schaeffler and Leoni are currently good examples of this.
Not only is the dividend yield, your company valuation, as measured by the price-to-earnings ratio (p / e), lets you conveniently appear. “Cheap or inexpensive?”, ask gravel a little bit sarcastic. And adds: “We are looking for a convenient bewertetete high-dividend growth company.” This includes companies whose business is threatened model is hardly new disruptive developments such as the digitizing module. And, of course, Sand & gravel does not want to pay too much, but rather too little for a stock. “The price for a company to estimate the Free Cash flow to be at least as important as the dividend yield and the p / e ratio,” says Schott.
“mix”
“free Cash flow”, understand the broker the proceeds of a company, so the Excess of deposits over withdrawals in certain periods. Schott calls the Cash flow, the “safety cushion established dividend values”. Because of the high investments that would have to do a lot of automotive manufacturers for clean motors or electric mobility, as well as because of the lawsuits against “Diesel-cheat-engines” is the free Cash Flow of many car manufacturers in the coming years is expected to be negative. And a lot of suppliers have to adjust yet to the upheavals that went with the changes from the internal – combustion engine to the electric motor. “Therefore, I must have been in a Depot from 25-to 40-dividend shares there is currently no car values,” says Schott.
The asset Manager prefers to concentrate on more cyclical companies, such as the chemical and pharmaceutical values of Bayer and BASF, Swiss stocks such as Nestlé and Roche, insurers such as Munich re, Allianz, industrial groups like Siemens, Values such as Total, Chevron and Exxon Mobile, which he senses after the price declines of the past few months for long-term investors are now buying opportunities.
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learn While Schott expects to 2019, with high price fluctuations in the stock market, but in the end, he expected neither in the trade conflict between China and the United States, while Britain’s exit from escalation, which raises the rate of economic growth in the world. His dividend Champions should at least be able to hold thanks to high Free Cash flow dividends and increase in terms of several years. Then, only income from dividends, are much higher than the interest rates do not wave to the investors. “Quality assets with sustainable dividends reflected in the price development of the market,” says Schott.
